I have a couple of real estate deals that I am really concerned about. My clients are applying for a Rural Development guaranteed loan. RD is great, right! Yes, they are, awesome, however they are out of money to fund loans with at this time. My clients could probably qualify for an FHA loan, however, I don't think they have enough for the down payment.
As you know with RD, they have great benefits:
They offer 100% financing, with no down payment, and no mortgage insurance or reserves are required. The funding fee is 2% and can be rolled into the loan to assist buyers. On the sellers side, RD offers, no limits on sellers concessions for fees and closing costs. These are decided by the underwriter.
I keep waiting to see if the US Congress is going to act and approve more money for Rural Development to start funding loans again. If they don't start funding soon, I think things in this country will go from bad to worse for a great many buyers. I am waiting to see how our elected politicians and the President will handle this situation.
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